Auto Express

MG Motor becomes first car manufacturer in India to accept model agency agreement: FADA


The Federation of Automobile Dealers Associations on Friday said MG Motor India has become the first automaker in the country to accept a model dealership agreement that gives retail partners a fair voice. in the business of selling cars.

Via:
PTI

|
Update on:
January 14, 2023, 09:00 am

MG Motor booth at Auto Expo 2023. The British-based foreign carmaker recently signed a model dealership agreement, the first among foreign automakers to do so. this.  (Bloomberg)
MG Motor booth at Auto Expo 2023. The British-based foreign carmaker recently signed a model dealership agreement, the first among foreign automakers to do so. this. (Bloomberg)

The association launched a model dealer agreement (MDA) last September with the aim of reversing the traditional “one-sided agreement” between automakers and their dealers and making their contracts become more balanced.

“The Model Dealer Agreement is an important part of the new age management and dealer association, creating a level playing field for OEMs and dealers to work together to deliver a number of products and services. cutting edge, most innovative for Indian customers.

“Nine OEMs have personally heard of the state-of-the-art dealer agreement and we’re pleased to report that each of them has responded in a very positive way. I’m pleased to announce that after two years of hard work by the FADA, MDA has been accepted and approved by MG Motor (India) today, marking the beginning of a journey to a successful end,” said Automobile Dealers Association (FADA) President Manish Raj Singhania said in a statement.

One of the main problems that the MDA seeks to address is the collapse of foreign automakers leaving India and the consequent loss of dealerships.

When Ford decided to leave India in 2021, some dealers said they were surprised because just a month before the announcement, the company sent a letter expressing its intention to set up new showrooms.

In 2017, when General Motors exited India, dealers were left in the lurch assuming they had to suffer around approx. $Lost 1,000 crore but was offered compensation only about $100 billion. However, the company has insisted that it is providing its agency partners with a fair and transparent conversion assistance package based on a unified approach across all agents.

Singhania said the dealer network is an important component of the automotive ecosystem, providing more than 450,000 jobs and a huge investment is underway in addition to being a major contributor to revenue generation for the states and central gorvenment.

“The auto industry has been on a roller-coaster ride in recent years, but it has weathered the storm. The past few months have clearly shown signs of resurgence, with increasing commitment and trust. between customers and members of the automotive industry. We are optimistic that this dynamic will continue,” he added.

First published date: January 14, 2023, 09:00 am IST

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button